India has managed to significantly curb import costs due to increased purchases of Russian oil, Reuters reported on Thursday, citing calculations based on government data.
The savings, which amounted to nearly $2.7 billion in the first nine months of the current year, have reportedly helped New Delhi to bolster economic growth and ease pressure on its trade deficit. In terms of value, its purchases of crude oil accounts for about a third of overall imports by the South Asian nation.
India imported 69.06 million metric tons of Russian crude, or 1.85 million barrels per day, in the period January to September, according to data from the country’s commerce ministry cited by the news agency.
The average price of Russian oil supplied to Indian refineries stood at $525.60 per ton, including shipping and insurance costs, the calculations showed, while the average landed cost of Iraqi crude that is of similar quality to the medium-sour Russian Urals crude was set at $564.46 per ton during the same period.
The difference reportedly helped India pay $2.7 billion less than the nation would have spent on Iraqi oil.
Asia’s third-biggest economy, as well as the world’s third-largest oil importer and consumer, India ramped up oil purchases after Russia rerouted supplies to the East in response to Western sanctions over the Ukraine conflict. This year, the nation replaced the EU as the largest buyer of seaborne Russian crude.
Meanwhile, Russia has surpassed Iraq as the top oil supplier to India, with Saudi Arabia relegated to third place. Apart from Urals, that accounts for the bulk of India’s oil purchases from Russia, the country also imports light sweet ESPO and Sokol blends.
Last month, Saudi Arabia raised prices for its flagship Arab Light crude to Asia and the US. The kingdom also prolonged voluntary supply curbs into December as part of OPEC+ plan to support global prices.
Earlier this year, Indian media reported that Moscow’s oil discounts to New Delhi had been gradually decreased from $30 per barrel in mid-2022 to $4 per barrel in July.
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